a-e

Example 1 / Exercise 1 (Depreciation for Partial Periods - SL, Act., SYD, and DDB) The cost of equipment purchased by Charleston, Inc., on June 1,2022, is $500,000. It is estimated that the machine will have a $50,000 residual value at the end of its service life. Its service life is estimated at 9 years; its total working hours are estimated at 45,000 hours and its total production is estimated at 900,000 units." life. During 2022, the machine was operated 6,000 hours and produced 160,000 units. During 2023 , the machine was operated 5,000 hours and produced 140,000 units. Instructions straight line. 2 year. Compute depreciation expense on the machine for the year ending December 31, 2022, and the year ending December 31, 2023, using the following methods. (a) Straight-line. (b) Units-of-output. (c) Working hours. (d) Sum-of-the-years'-digits. (e) Declining-balance (twice the straight-line rate)